Moody's raises Turkey's credit rating amid improved economic management

(MENAFN) On Friday, Moody's Investors Service elevated Turkey's credit rating by two notches from B3 to B1, while maintaining a "positive" outlook for the country. This upgrade reflects the agency's recognition of significant improvements in Turkey's economic management, particularly the country's return to conventional monetary policies. Moody's noted that these changes have begun to address some of the major economic imbalances that Turkey has been facing.

The upgrade was primarily driven by Turkey's progress in stabilizing its economic environment. The implementation of traditional monetary policies has led to tangible results, including a reduction in inflation and domestic demand. These developments have fostered greater confidence that inflationary pressures will continue to ease significantly in the upcoming months and through 2025.

Moody's highlighted the Turkish Central Bank's successful efforts to enhance the credibility of its monetary policy. This improvement has been instrumental in restoring trust in the Turkish lira. Furthermore, the agency commended Turkey's firm political stance, which has notably diminished the country's external vulnerabilities. The "positive" outlook reflects an expectation of continued improvement, with risks now balanced more favorably. 

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